Well, I have never had any luck with any type of fluid fixing anything, and this is no exception. I wanted to try the SeaFoam straight into the IP, but even if I filled the downstream filter with it, most of it would be returned to the tank with only a little bit going to the IP. So I drained the entire fuel system; filters, lines and tank. Put in a can of SeaFoam, but it would not nearly get to the bottom of the pick-up tube in the tank. So I put in 2 more cans and had to add a couple quarts of diesel to get the level to the pick-up tube. Primed everything and cranked it. It did the same thing it has been doing, so I let it sit overnight. I had also adjusted the valves, one was a little loose by about .003".
Cranked it again and it did the same thing; smoked, ran for a while then slowly died. But while it was running I pulled the dipstick and it spit out a healthy dose of oil and vapor. So I'm pretty sure I have a broken or stuck ring. So I took a piece of the shroud off, hotwired the high temp cut-out switch and ran it for a few minutes allowing the temperature to get a little hotter than normal, hoping to loosen a ring. Then let it cool, put the shroud back on and tried again. No such luck, it ran exactly the same.
So I found a sweet deal on a newly rebuilt complete engine that one of our members was selling. It is now on the way.
I'll get around to tearing this one down and fixing it, or I may just keep it for parts.
I guess I let it sit too long between exercising it, which is too bad that I now have a useless engine with less than 30 hours on it.